Aviation
Air Canada Pushes for Binding Arbitration as Flight Attendant Strike Threatens Nationwide Shutdown
Air Canada has formally requested that Canada’s Labour Minister, Patty Hajdu, refer its dispute with the Canadian Union of Public Employees (CUPE) to binding arbitration under Section 107 of the Canada Labour Code. The move comes as a potential nationwide shutdown looms, with both a strike and lockout notice already issued.
Patty Hajdu, who has met with both sides during negotiations, described the escalation as a “disappointing development” for Canadians and has asked CUPE to respond to the airline’s request. She urged the two parties to resolve their differences at the bargaining table.
Union Says Airline Absent from Talks
CUPE’s Air Canada component stated that it had tabled its latest proposal at 9 p.m. ET on Tuesday, hours before both strike and lockout notices were served. The union claims it has remained at the bargaining table since, waiting for a counter-offer that has yet to come.
Air Canada executives maintain they are open to further negotiations or consensual arbitration but warn that operational disruptions will be unavoidable without progress.
Mass Flight Cancellations Underway
As tensions mount, Air Canada has begun preemptively cancelling flights to ensure a “safe and orderly wind down” of operations. Executive Vice-President and COO Mark Nasr said that by the end of Friday, approximately 500 flights will have been cancelled, affecting over 100,000 customers.
By Saturday morning, the airline’s mainline and Rouge flights will be entirely grounded, potentially stranding 130,000 passengers per day, including roughly 25,000 Canadians abroad.
Refunds and Rebooking Options
Passengers impacted by cancellations will be eligible for full refunds through Air Canada’s website or mobile app. The airline is also working to rebook affected travellers on more than 120 partner and competitor airlines, though peak summer schedules mean space will be limited.
Those unable to secure an alternate flight can opt to rebook at a later date without fees.
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Competitors Prepare for Overflow
Other Canadian airlines, including WestJet, Porter, Flair, and Air Transat, report increased booking demand amid the uncertainty. While all have confirmed they are monitoring the situation closely, limited summer capacity may restrict their ability to absorb displaced Air Canada passengers.
Porter noted it has passenger protection agreements in place with several airlines to help accommodate travellers. Air Transat confirmed it has been contacted by Air Canada to rebook some passengers under an irregular operations agreement.
High Stakes for Summer Travel
With a full shutdown just days away, the outcome of these negotiations could affect hundreds of thousands of travellers during Canada’s peak holiday season. Whether through last-minute bargaining or government intervention, the next 48 hours will determine whether Air Canada avoids one of the largest operational standstills in its history.
